LGA welcomes major Federal Budget investment to unlock housing infrastructure

The new funding stream will invest an additional $2 billion over four years from 2026-27 to support enabling infrastructure including roads, water, sewerage and power connections needed to deliver up to 65,000 new homes nationally over the next decade. The package includes $500 million dedicated to regional Australia.

LGA President Mayor Heather Holmes-Ross said the announcement was a major win for local government and reflected sustained advocacy from LGA and the Australian Local Government Association (ALGA) on behalf of the sector across the country.

“This is a very welcome announcement and recognition that councils are key partners in addressing Australia’s housing challenge,” Mayor Holmes-Ross said.

“For years, local government has been calling for greater investment in the enabling infrastructure needed to unlock housing supply. Councils know first-hand that housing growth cannot happen without the roads, stormwater, water, sewerage and community infrastructure that support new communities.”

Mayor Holmes-Ross said the funding aligned strongly with LGA’s Federal Election Platform asks and ongoing advocacy through local councils across Australia, consistently highlighting infrastructure funding as one of the key barriers to housing delivery.

"This funding will help councils plan with greater certainty and work collaboratively with all levels of government to accelerate housing delivery and improve affordability,” Mayor Heather Homles-Ross said.

The Federal Government has advised the new Local Infrastructure Fund would support projects that otherwise may not proceed because of infrastructure constraints. Further details will be outlined in tonight’s Federal Budget.